Doing Business In India

India has become an important destination for NRIs, OCIs and foreign businesses looking to start, expand or invest in business activities. However, setting up and operating a business in India involves various requirements relating to business structure, taxation, GST, corporate filings and regulatory compliance. Understanding these requirements at the beginning can help in planning the business properly and maintaining compliance.

GST registration and return filing

Setting Up a Business in India

Choosing the right business structure is an important part of starting a business. The suitable structure depends on factors such as the nature of business, ownership, investment, number of participants and future plans.

Common business structures include:

  • Private Limited Company
  • Limited Liability Partnership (LLP)
  • Partnership Firm
  • Proprietorship
  • Other permitted structures for foreign businesses

Depending on the structure selected, the setup may involve entity registration, PAN, TAN, DSC, GST registration and other applicable registrations.

Tax & Regulatory Compliance

Once the business is established, regular compliance becomes an important part of operations. Depending on the nature and structure of the business, this may include:

  • Income tax return filing and tax payments
  • GST registration and return filing, where applicable
  • TDS deduction, payment and return filing
  • Maintenance of books and financial records
  • ROC/MCA filings for companies and LLPs
  • Applicable business registrations and regulatory filings

The requirements can differ based on the business activity, turnover, entity structure and nature of transactions.

For NRIs & Foreign Businesses

NRIs and foreign businesses setting up operations in India may have additional considerations relating to FEMA, RBI regulations, foreign investment, taxation and reporting.

The source and manner of investment, ownership structure and nature of business can determine which regulations and approvals are applicable. Proper planning is therefore important before bringing funds into India or commencing business activities.

Ongoing Business Requirements

Running a business also requires timely maintenance of financial records, tax filings and statutory compliances. Changes in directors, partners, registered office, business activities or ownership may also require relevant amendments or filings.

Keeping these requirements organised can help avoid unnecessary delays, notices, interest, penalties and compliance issues.

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